In late 2009, all Australian states and territories have now passed Security of Payment Acts in an effort to improve cash flow throughout the entire building and construction industry.
The Australian Capital Territory’s Legislative Assembly passed their Security of Payment Act on 19 November 2009, known officially as the Building and Construction Industry (Security of Payment) Act 2009.
Jon Stanhope, MLA Chief Minister explained his reasoning behind the effecting of this legislation, stating that “The building and construction industry plays a critical role in the ACT economy. Throughout the 2007-08 financial year, there were over 15,000 people employed in the construction industry, and the value of building, construction and engineering work done in the ACT exceeded $2 billion.”
Similar to both the New South Wales and Queensland legislation, this Act is designed to facilitate recovery of payments under construction contracts in the building and construction industry. The Act will commence on the 1st July 2010. Please be aware that it will not apply to contracts entered into before commencement of the Act (1 July 2010).
In South Australia, the Building and Construction Industry Security of Payment Act 2009 received its Royal Assent on 10 December. Still no date from commencement of this act has been advised. This Act is based on the New South Wales legislation, but with some slight amendments.
And finally in Tasmania, the Building and Construction Industry Security of Payment Act 2009 enacted by His Excellency the Governor of Tasmania on 17 December and came into effect on that date. This legislation only applies to contracts entered into after that date and will pave the way for impartial payment standards for construction contracts.
For more information on this or anything else please do not hesitate to contact the DRS office on 1300 953 459.
